A jury will ultimately be asked to determine which man Traynor Walters was on Tuesday evening following a drunken incident at his Lake Illawarra home that left his one-time work colleague and pub drinking buddy bruised and bloodied.

Walters, 44, fronted Wollongong Local Court on Wednesday accused of holding the alleged victim against his will and threatening to kill him over a debt owed to him by one of the man's female friends.

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Court documents reveal Walters purchased a watch from a 19-year-old woman on Sunday for $150 but never received the item.

Meanwhile, that woman, her 44-year-old female friend and the alleged victim came to Walters' house for a barbecue on Tuesday.

After a day of heavy drinking, Walters allegedly became emotional and told the trio he needed money to travel to Liverpool to attend his aunt's funeral.

In the early hours of Wednesday morning, Walters allegedly demanded the younger woman return his $150 and told the trio they weren't leaving his house until the money was repaid.

It is alleged Walters agreed to let the two women go so they could get the money, but detained the alleged victim inside his garage.

One of the women told police she purposefully drove the victim's car into a hedge at the front of Walters' house in the hopes the neighbours would contact police.

The woman then drove a short distance down the road and spoke to responding police, who attended the property and forced their way inside after hearing the alleged victim calling out for help.

The man claimed Walters had not allowed him to leave the property and had punched him several times in the head, hit him in the stomach with a Jim Beam bottle and smashed his right knee with a broom handle.

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The man said Walters had only stopped when he heard the officers outside the house, and told the alleged victim "you wanna hope this don't end up bad otherwise I'll get you and the girls, I'll kill ya, I don't care if I go to jail for life".

In court on Wednesday, defence lawyer Greg Melrose said Walters denied holding the man against his will, claiming he had only been trying to prevent his guests from driving home due to their state of intoxication.

"The older woman got into the car, she couldn't engage reverse she was so intoxicated," he said.

"Instead the car went forward and she drove into the hedge.... he did his best to keep them there so they didn't drive.

"He denies any assault and the matter will be defended. He says the allegations are totally wrong, he would not do that and he finds the whole proposition ridiculous."

Magistrate Robert Walker granted Walters strict bail on the conditions he not contact any of the witnesses, report to police daily and abstain from drugs and alcohol.

The case will return to court next month.